impact of government policies and investment agreements on fdi ...

Table 9 :
Impact <strong>of</strong> Government Policies <strong>and</strong> Bilateral Investment Agreements on
FDI Approvals from Developed <strong>and</strong> Developing Countries: R<strong>and</strong>om
Effects Model
Explanatory
variables
FDI-
Developed
Countries
FDI-
Developing
Countries
FDI-
Developed
Countries
FDI-
Developing
Countries
MKTSIZE 2.50***
(5.78)
2.29***
(5.55)
2.37***
(5.13)
3.21***
(6.55)
GRTHMKT 0.02
(0.77)
0.06**
(1.91)
0.25
(0.73)
0.08**
(2.33)
COSTLB -0.008
(-0.56)
-0.03**
(-2.10)
-0.009
(-0.59)
-0.08*
(-1.84)
PDTYLB 0.03**
(1.89)
0.009
(0.57)
0.02*
(1.69)
0.008
(0.47)
EDU 0.02**
(2.13)
0.07
(0.42)
0.003
(0.09)
0.01
(0.84)
EXRATE -0.001
(-1.63)
-0.003***
(-3.99)
-0.001
(-2.03)
-0.003***
(-4.17)
EXTDEBT -0.85
(-0.99)
-0.16**
(-1.88)
-0.08
(-1.01)
-0.11
(-1.26)
T&C 32.61***
(2.65)
25.57**
(2.09)
32.90***
(2.72)
29.68**
(2.42)
ELECT 0.0002
(0.71)
0.0002
(0.66)
0.0003
(0.68)
0.0008
(0.02)
LDRATE -0.001***
(-2.90)
-0.0007**
(-2.00)
-0.001***
(-2.99)
-0.007**
(-2.08)
EXVOLATILIT
Y
-0.03
(-0.88)
-0.005
(-1.10)
-0.01
(-1.00)
-0.02
(-1.20)
BUDGETDEF -0.002
(-0.93)
-0.06**
(-2.18)
-0.002
(-0.86)
-0.06*
(1.82)
TARIFF -0.001
(-0.22)
-0.008**
(-1.90)
-0.002
(-0.27)
-0.008**
(-1.99)
REST 0.32***
(4.83)
0.13
(-0.79)
0.18***
(2.73)
-0.42
(0.20)
INCENTIVES -0.14
(-0.85)
0.32**
(2.68)
-0.15
(-0.90)
0.30***
(4.14)
BITDC 0.17**
(2.12)
BITDVGC 0.11
(0.47)
CONSTANT -60.80***
(-5.64)
-55.76***
(-5.41)
-57.59***
(-4.93)
-81.17
(-3.47)
Adjusted R-
0.64 0.65 0.65 0.69
squared (OLS)
Observations 150 150 150 150
Hausman) 2.37 1.88
Notes: 1.Results <strong>of</strong> R<strong>and</strong>om Effects Model are presented. 2. Results are corrected for Autocorrelation <strong>and</strong>
Hetroscedasticity 3.List wise deletion is made for missing values. 4.Hausman test supports r<strong>and</strong>om effect model.
Figures in parenthesis are t-statistic. *** denotes significance at 1%, ** at 5% <strong>and</strong> * at 10%.
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